Team Blitz India
NEW DELHI: Card-based business-to-business payments made through payment intermediaries have been stopped since they violated the Payment and Settlement Systems Act 2007, the Reserve Bank of India said.
The apex bank wrote that fintech companies like EnKash, Paymate and others have been instructed by card network Visa to stop offering business payment services through their commercial cards.
Visa onboards fintechs for this service under its BPSP programme. BPSP stands for business payments solution provider, which is a term used to describe the service of providing B2B payments through card rails.
Explaining the rationale behind the action, RBI said the intermediary accepts the payments from corporates for their commercial transactions and remits the funds to recipients who are not authorised to accept card payments. Hence, the regulator has asked these players to stop offering this service.
